- May 28, 2025
- Posted by: Carolyn
- Categories: Estate Planning, Families, Home ownership
If you’re like many folks who were able to buy your home before housing prices began to rocket out of reach, you have likely seen a substantial growth in your home’s value, especially in the last 5 or 6 years. Here in Portland, we have had a few home price booms over the past couple decades. And now a home that sold for $250,000 in 2008 could have a market value closer to $650,000 or more today. If that’s your case, it’s great for your financial health but it could have a serious impact on your estate plan.
Many Oregonians are surprised to learn that the state imposes its own estate tax, separate from the federal estate tax. And unlike the federal threshold (which is over $14 million currently), Oregon’s exemption is just $1 million. That means if your total estate — including your home, retirement accounts, investments, and other assets — exceeds that amount, your heirs could face an estate tax of up to 16%!
What, if anything, should you do about it?
One of the most effective tools is a revocable living trust. This can help your estate avoid probate, streamline the transfer of assets, and provide greater privacy for your family. It doesn’t reduce your estate tax liability on its own, but it lays the foundation for more advanced planning.
It is also worth noting that when your heirs inherit your property, they’ll typically receive a step-up in basis, which can eliminate capital gains taxes on your home’s appreciation during your lifetime, as long as your estate plan is structured properly.
Estate planning in Oregon isn’t one-size-fits-all. The best approach depends on your unique circumstances — which is why I am happy to meet with you to discuss the best plan for your individual needs. Drop me an email, or schedule a free 15-minute introduction call and let’s get started protecting your legacy.